Established as a territory of the UK in 1965, a number of the British Indian Ocean Territory (BIOT) islands were transferred to the Seychelles when it attained independence in 1976. Subsequently, BIOT has consisted only of the six main island groups comprising the Chagos Archipelago. The largest and most southerly of the islands, Diego Garcia, contains a joint UK-US naval support facility. All of the remaining islands are uninhabited. Former agricultural workers, earlier residents in the islands, were relocated primarily to Mauritius but also to the Seychelles, between 1967 and 1973. In 2000, a British High Court ruling invalidated the local immigration order that had excluded them from the archipelago, but upheld the special military status of Diego Garcia.

no indigenous inhabitants
note: approximately 1,200 former agricultural workers resident in the Chagos Archipelago, often referred to as Chagossians or Ilois, were relocated to Mauritius and the Seychelles in the 1960s and 1970s; in November 2000 they were granted the right of return by a British High Court ruling, though no timetable has been set; in November 2004, there were approximately 4,000 UK and US military personnel and civilian contractors living on the island of Diego Garcia (July 2006 est.)

All economic activity is concentrated on the largest island of Diego Garcia, where joint UK-US defense facilities are located. Construction projects and various services needed to support the military installations are done by military and contract employees from the UK, Mauritius, the Philippines, and the US. There are no industrial or agricultural activities on the islands. When the Ilois return, they plan to reestablish sugarcane production and fishing. The country makes money by selling fishing licenses and postage stamps.

general assessment: separate facilities for military and public needs are available
domestic: all commercial telephone services are available, including connection to the Internet
international: international telephone service is carried by satellite (2000)

Mauritius and Seychelles claim the Chagos Archipelago including Diego Garcia; in 2001 the former inhabitants of the Chagos Archipelago, evicted in 1965 and now residing chiefly in Mauritius, were granted UK citizenship and the right to repatriation; the UK resists the Chagossians' demand for an immediate return to the islands; repatriation is complicated by the exclusive US military lease of Diego Garcia that restricts access to the largest island in the chain;